News & analysis

Regional overview

Regional overview

MDI

Updated to Q3 2017

Supply of both polymeric MDI (PMDI) and monomeric MDI (MMDI) was tight in China, South Korea and Japan. This was due to a shortage of cargoes in China, supply disruption to a raw material carbon monoxide (CO) producer in South Korea as well as a scheduled plant turnaround in Japan from mid-September to H2 October.

Demand remained generally stable despite June and July being the traditional lull demand seasons, with the tight supply situation having resulted in a spike in prices in China.

TDI

Updated to Q3 2017

Overall Asian supply was reduced in Q3 due to slightly tighter supply from South Korea and less import availability from Japan. Supply in domestic China remained relatively stable with one local producer delaying a plant turnaround due to the surge in domestic prices from July to August.

Buyers mostly purchased on a need-to-basis amid increasing Asian spot import prices from late-July to mid-September. In September, buyers became increasingly resistant when prices surpassed highs set in November last year. Small downstream foam makers in China either closed down or cut operating rates due to the firmer prices of TDI and other feedstock polyols as well as environmental restrictions imposed by the Chinese authorities.

Price reporting

Price reporting

ICIS is the only publication that provides a weekly price assessment on Isocyanates, Toluene di-isocyanate (or TDI) and methylene di-p-isocyanate (or MDI) in Asia.

For TDI, the report provides comprehensive coverage of the key China market, including cost & freight (CFR) China spot and monthly contract prices, and domestic prices for the North, South and East of China.

An assessment is also provided for South East Asia, alongside commentary on both the delivered and Indonesia and Malaysia markets. The cost, insurance and freight (CIF) India quote and commentary rounds up our TDI market coverage.

For MDI, we monitor both spot CFR import and domestic prices in China for both polymeric and monomeric or pure MDI.

To deliver greater context to the assessed prices, China’s many import statistics are provided, together with details of monthly production of upholstered furniture in China.

Feedstock Benzene, news of production output, and unexpected plant outages are also covered. We list deals, bids and offers that deliver easy reference assessments for our customers and this information also helps them in their decision making.

We speak to all the major players who produce, buy and sell isocyanates as this builds up a comprehensive and unbiased view of the market.

This is useful for participants looking for an independent reference or benchmark for spot transactions.

Editor

Price history

Price history

ICIS collects pricing data on a wide range of chemical, energy and fertilizer products, including Isocyanates. Our extensive experience in price reporting means we can offer you access to historical data dating back more than 20 years for certain commodities.

Our time series of pricing data enables you to build and model trends, to get a view of where markets might be heading. The data service includes charting functionality, allowing you to chart and download multiple data series for manipulation in your own internal models. You can also export data to Excel via the ICIS dashboard service.

Methodology

ICIS price assessments are based on information gathered from a wide cross-section of the market, comprising consumers, producers, traders and distributors from more than 250 reporters world-wide. Confirmed deals, verified by both buyer and seller, provide the foundation of our price assessments.

Our in-depth market knowledge drives our specialist focus, as we recognise the importance of individual market dynamics and not a one-size-fits-all approach.

Over 25 years of reporting on key chemicals markets, including Isocyanates, has brought global recognition of our methodology as being unbiased, authoritative and rigorous in preserving our editorial integrity. Our global network of reporters in Houston, London, Singapore, Shanghai, Guangzhou, Mumbai, Perth and Moscow ensures unrivalled coverage of established and emerging markets.

Isocyanates Methodology

The main use for methyl di-p-phenylene isocyanate (MDI) is in the production of rigid and semi-rigid polyurethane foams, which accounts for some 80% of global consumption.

US isocyanate buyers are hoping to see improved supply conditions in 2018

US isocyanate buyers are hoping to see improved supply conditions in 2018, after both methyl di-p-phenylene and toluene di-isocyanate (TDI) markets saw significant price increases over the course of 2017, driven by persistent supply tightness.

In this ICIS outlook article, editor Zachary Moore discusses supply conditions in the isocyanates market and what to expect in 2018.